GRANT FUNDING OPPORTUNITY
Light Heavy-Duty to Medium Heavy-Duty Natural Gas Engine Integration and Demonstration Research
GFO-15-503
http://www.energy.ca.gov/contracts/index.html
State of California
California Energy Commission
September 2015
Table of Contents
I. Introduction 1
A. Purpose of Solicitation 1
B. Key Words/Terms 2
C. Applicants’ Admonishment 3
D. Background 3
E. Funding 5
F. Key Activities Schedule 7
G. Pre-Application Workshop 7
H. Questions 9
II. Eligibility Requirements 10
A. Applicant Requirements 10
B. Project Requirements 11
III. Application Organization and Submission Instructions 14
A. Application Format, Page Limits, and Number of Copies 14
B. Application Delivery 15
C. Application Organization and Content 15
IV. Evaluation and Award Process 20
A. Application Evaluation 20
B. Ranking, Notice of Proposed Awards, and Agreement Development 21
C. Grounds to Reject an Application or Cancel an Award 22
D. Miscellaneous 22
E. Stage One: Application Screening 24
F. Stage Two: Application Scoring 25
Attachments1 / Application Form (requires signature)
2 / Executive Summary Form
3 / Fact Sheet Template
4 / Project Narrative Form
5 / Project Team Form
6 / Scope of Work Template
Project Schedule (Excel spreadsheet)
7 / Budget Forms (Excel spreadsheet)
8 / CEQA Compliance Form (requires signature)
9 / References and Work Product Form
10 / Contact List Template
11 / Commitment and Support Letter Form (letters require signature)
12 / California-Based Entity (CBE) Form
GFO-15-503
Light Heavy-Duty to Medium Heavy-Duty Natural Gas
Engine Integration and Demonstration Research
Page i
I. Introduction
A. Purpose of Solicitation
The purpose of this solicitation is to support the development, integration and demonstration of advanced natural gas engines in light heavy-duty vehicle (LHDV) to medium heavy-duty vehicle (MHDV) applications. Advanced natural gas engines for these applications, also commonly referred to as Class 3 to Class 7 vehicles respectively, will provide this market segment with a high-performance natural gas option capable of meeting or exceeding future emission regulations while simultaneously providing the same performance benefits of similar diesel engines.
California’s transportation sector is one of the primary sources of emissions in California and has been acknowledged as a key subject for energy consumption and environmental impact research. Research efforts in transportation for the continued advancement of transportation technologies that target emission reduction and efficiency improvement will support California’s continued efforts to reduce greenhouse gas emissions, protect the environment and protect public health in communities throughout California.
Through this Grant Funding Opportunity, the Energy Commission seeks natural gas engine projects that are based off of an existing diesel engine suitable for Class 3 through 7 vehicles and are in the final stages of development. Projects should be in the process or have completed California Air Resources Board (CARB) certification, and as a final phase, be preparing for chassis integration and on-road vehicle demonstration. Projects will integrate new and current production natural gas engines and aftertreatment systems into new chassis and vehicle platforms. The Energy Commission is primarily seeking projects that not only meet or exceed current 2010 CARB emission standards, but through this solicitation, complete work to meet expected future 2017 CARB emission standards.
See Part II of this solicitation for project eligibility requirements. Applications will be evaluated as follows: Stage One proposal screening and Stage Two proposal scoring. Applicants may submit multiple applications, though each application must be for a distinct project (i.e., no overlap with respect to the tasks described in the Scope of Work, Attachment 6).
B. Key Words/Terms
Word/Term / Definition /Applicant / The respondent to this solicitation
Application / An applicant’s formal written response to this solicitation
CAM / Commission Agreement Manager, the person designated by the Energy Commission to oversee the performance of an agreement resulting from this solicitation and to serve as the main point of contact for the Recipient
CARB / California Air Resources Board
CBE / California-Based Entities
Energy Commission / California Energy Commission
EPA / Environmental Protection Agency
g/bhp-hr / Grams per brake horsepower-hour
GHG / Greenhouse Gas
GFO / Grant Funding Opportunity
IOU / Investor-owned utility
NOx / Oxides of nitrogen or nitrogen oxides, a chief component of air pollution that can be produced by burning fossil fuels
NOPA / Notice of Proposed Award, a public notice that identifies award recipients
Principal Investigator / The lead scientist or engineer for the applicant’s project, who is responsible for overseeing the project; in some instances, the Principal Investigator and Project Manager may be the same person
Project Manager / The person designated by the applicant to oversee the project and to serve as the main point of contact for the Energy Commission
Project Partner / An entity or individual that contributes financially or otherwise to the project (e.g., match funding, provision of a demonstration site), and does not receive Energy Commission funds
RD&D / Research Development and Demonstration
Recipient / The recipient of an award under this solicitation
Solicitation / This entire document, including all attachments and exhibits (“solicitation” may be used interchangeably with “grant funding opportunity”)
State / State of California
C. Applicants’ Admonishment
This solicitation contains application requirements and instructions. Applicants are responsible for carefully reading the solicitation, asking appropriate questions in a timely manner, ensuring that all solicitation requirements are met, submitting all required responses in a complete manner by the required date and time, and carefully rereading the solicitation before submitting an application. In particular, please carefully read the Screening/Scoring Criteria and Grounds for Rejection in Part IV, and the terms and conditions located at: http://www.energy.ca.gov/contracts/index.
Applicants are responsible for the cost of developing applications. This cost cannot be charged to the State. All submitted documents will become public records upon the posting of the Notice of Proposed Award.
D. Background
1. Natural Gas Research and Development Program
This solicitation will award projects under the Natural Gas RD&D program, which is funded by a ratepayer surcharge on all natural gas consumed in California. The California Public Utilities Commission (CPUC) established the surcharge and program in August 2004.[1] The purpose of the program is to benefit California natural gas ratepayers. The surcharge funds public benefit activities designed to increase natural gas end-use efficiency and advance science or technology.
Program funds for Fiscal Year 2014-15 total $24 million, 17% of which will be allocated for natural gas-related transportation research. The Energy Commission’s Natural Gas Research, Development, and Demonstration Program, Proposed Program Plan and Funding Request for Fiscal Year 2014-15 staff report[2] identifies this Natural Gas-Related Transportation Research Initiative called “Mid-Size Engine Integration and Demonstration.” The funding amount for the research initiative is $1.657 million.
The solicitation is being developed as part of the recommended actions of Priority RD&D Actions for Engine Development and Vehicle Integration outlined and described in the Natural Gas Vehicle Research Roadmap (PUB# CEC-500-2008-044-F).
2. Applicable Laws, Policies, and Background Documents
This solicitation addresses the energy goals described in the following laws, policies, and background documents.
Laws/Regulations
· Assembly Bill (AB) 32 (“The Global Warming Solutions Act of 2006”)
AB 32 created a comprehensive program to reduce greenhouse gas (GHG) emissions in California. GHG reduction strategies include a reduction mandate to reach 1990 levels by 2020 and a cap-and-trade program. AB 32 also required the California Air Resources Board (CARB) to develop a Scoping Plan that describes the approach California will take to reduce GHGs. CARB must update the plan every five years.
Additional information: http://www.arb.ca.gov/cc/ab32/ab32.htm
Applicable Law: California Health and Safety Code § 38500 et. seq.
· AB 118 (Statutes of 2007)
AB 118 provides approximately $200 million annually through 2015 for three new programs to fund air quality improvement projects and develop and deploy technology and alternative and renewable fuels. The bill creates a dedicated revenue stream for the programs via increases to the smog abatement, vehicle registration, and vessel registration fees.
Additional information: http://www.arb.ca.gov/msprog/aqip/bkgrnd.htm#AB118
Applicable Law: California Health and Safety Code § 44060 et. seq.
· Integrated Energy Policy Report (Biennial)
California Public Resources Code Section 25302 requires the Energy Commission to release a biennial report that provides an overview of major energy trends and issues facing the state. The IEPR assesses and forecasts all aspects of energy industry supply, production, transportation, delivery, distribution, demand, and pricing. The Energy Commission uses these assessments and forecasts to develop energy policies.
Additional information: http://www.energy.ca.gov/energypolicy
Applicable Law: California Public Resources § 25300 et. seq.
· Senate Bill (SB) 1250 (Statutes of 2006)
SB 1250 includes development of advanced transportation technologies as a PIER goal. Investments in advanced transportation technologies aim to reduce air pollution and GHG emissions beyond applicable standards and to benefit electricity and natural gas ratepayers.
Applicable Law: California Public Resources § 25620 et. seq.
· Natural Gas Vehicle Research Roadmap (2009)
The California Energy Commission’s Research Roadmap identifies initiatives and projects that research, develop, demonstrate, and deploy advanced fuel‐efficient natural gas powered transportation technologies and fuel‐switching strategies that result in a cost‐effective reduction of on‐road and off‐road petroleum fuel use in the short and long term. Research roadmap findings show that there exists a lack of heavy‐duty and off‐road engine sizes or capacity and that vehicle integration of new engines is a significant hurdle to greater natural gas vehicle availability and market penetration. Specific research topics include engine development and vehicle integration, fueling infrastructure and storage, and technical and strategic studies.
Additional information: http://www.energy.ca.gov/2008publications/CEC-500-2008-044/CEC-500-2008-044-F.PDF
Reference Documents
For information about past research projects and activities associated with building energy efficiency, refer to:
· The 2012 PIER Annual Report (Publication # CEC-500-2013-013-CMF)
http://www.energy.ca.gov/ publications/index.php)
· http://www.energy.ca.gov/research/
E. Funding
1. Amount Available and Minimum/ Maximum Funding Amounts
There is up to $1,657,000 $2,000,000 available for grants awarded under this solicitation. The minimum funding amount for each project is $500,000. The maximum funding amount is $ 830,000 $1,000,000.
2. Match Funding Requirement
Though match funding is not required for this solicitation, applications that include match funding will receive additional points during the scoring phase (see scoring criterion 7 in Part IV, section F).
· “Match funds” include: (1) “cash in hand” funds; (2) equipment; (3) materials; (4) information technology services; (5) travel; (6) subcontractor costs (7) contractor in-kind labor costs; and (8) “advanced practice” costs. Match funding sources include the prime contractor, subcontractors, and demonstration sites (e.g., demonstration site staff services). “Match funds” do not include Energy Commission awards, future/contingent awards from other entities (public or private), or the cost or value of the project work site.
o “Cash in hand” Funds means funds that are in the recipient’s possession and are reserved for the proposed project, meaning that they have not committed for use or pledged as match for any other project. “Cash in hand” funds include funding awards earned or received from other agencies for the proposed technologies or study (but not for the identical work). As applicable, proof that the funds exist as cash is required at the project kick-off meeting.
o “Equipment” means an item with a unit cost greater than $5,000 and a useful life greater than one year. Purchasing equipment with match funding is encouraged because there are no disposition requirements at the end of the agreement for such equipment. Typically, grant recipients may continue to use equipment purchased with Energy Commission funds if the use is consistent with the intent of the original agreement.
o “Materials” means tangible project items that cost less than $5,000 and have a useful life of less than one year.
o “Information Technology Services” means the design, development, application, implementation, support, and management of computer-based information systems directly related to the tasks in the Scope of Work. All information technology services in this area must comply with the electronic file format requirements in Subtask 1.1 (Products) of the Scope of Work.
o “Travel” means all travel required to complete the tasks identified in the Scope of Work. Travel includes in-state and out-of-state travel, and travel to conferences. Use of match funds for out-of-state travel and travel to conferences is encouraged.
o “Subcontractor Costs” means all costs incurred by subcontractors for the project, including labor and non-labor costs.
o “Contractor in-Kind Labor Costs” means contractor labor costs that are not charged to the Energy Commission.
o “Advanced Practice Costs” means costs not charged to the Energy Commission that represent the incremental cost difference between standard and advanced practices, measures, and products used to implement the proposed project. For example, if the cost of purchasing and/or installing insulation that meets the applicable building energy efficiency standard is $1/square foot and the cost of more advanced, energy efficient insulation is $3/square foot, the Recipient may count up to $2/square foot as match funds.
· The applicant must provide justification for the dollar value claimed for all match funding other than “cash in hand” funds (please see Attachment 4, Project Narrative Form, item #7).
· Match funds may be spent only during the agreement term, either before or concurrently with PIER funds. Match funds also must be reported in invoices submitted to the Energy Commission.
· Applicants must submit letters of commitment identifying the source(s) and availability of match funds (please see Attachment 11, Commitment and Support Letter Form).
3. Change in Funding Amount
The Energy Commission reserves the right to:
· Increase or decrease the amount of funding allocated for this solicitation.
· Allocate any additional funds to passing applications, in rank order.
· Reduce funding to an amount deemed appropriate if the budgeted funds do not provide full funding for agreements. In this event, the Recipient and Commission Agreement Manager will reach agreement on a reduced Scope of Work commensurate with available funding.
F. Key Activities Schedule
Key activities, dates, and times for this solicitation and for agreements resulting from this solicitation are presented below. An addendum will be released if the dates change for activities that appear in bold.